State Government and Economic Performance by Dr. Paul Brace
In this paper we are asked to read the text by Dr. Paul Brace, "State Government & Economic Performance," from that we are to decide as if we were the governor of the state of Kansas, which economic development strategy would be best for Kansas. Out of the four choices we were given, Arizona, Texas, Michigan, New York, I have chosen to argue for the example of Michigan. Before I go into great detail of the particular example I have chosen, let me give you a brief description of the governmental economic strategies of each state.
Arizona's economy started out with great funding from the government and also from it's abundance of natural resources. With the growing number of people moving to the new hot bed of economy, Arizona officials began to take more of a Laissez Faire approach to government. With WWI and eventually WWII, Arizona received several governmental contracts to build ships, planes and new military bases due to Arizona's natural closeness to the pacific campaign.
Not long after that Arizona's economy started record numbers of economic increase, due vastly to the tax breaks and other incentives used to bring big business to the area. Large manufacturing, technology and automobile companies looked to relocate to the booming state. This change in opportunities left the natural resources industry in Arizona a distant memory of importance. With big business booming, who needed the small time industry that carried them from its creation to where they were just after WWI. On top of that, governmental procedure had to go along with this change. After all with every action there is a equal and just as great reaction that occurs. With the hands off approach the government had implemented there were also cut backs! Lower spending on education being the biggest one. If they cut taxes, were are they going to find the money to fund the schools that are going to be needed to support the vastly growing population that would come with these businesses. And that's no even mentioning anything about the several other governmental agencies that would be effected by the lack of revenue to the state. These changes, that made Arizona the hot bed that it was, would ultimately be the same thing that would cause they downfall of the economic resurgence for Arizona.
Soon after businesses stopped coming. They claimed that because of the lack of schooling available in major programs, particularly engineering, it had became increasingly hard to find the engineers that were needed to run these plants and sustain profit.
Ultimately, Arizona's economic future according to brace, depends on two factors. As long as conditions elsewhere stimulate migration to the state, and as long as Arizona retains a relatively low cost of living compared to other states, Arizona can grow. But it is overwhelmingly convincing that Arizona's entire economy it based and virtually dependent on help from...